The International Monetary Fund (IMF) has renewed its call against the adoption of Bitcoin and other cryptocurrencies, citing economic risk among others.

In a statement issued on October 1 and seen by Ripples Nigeria on Sunday, IMF admitted that cryptocurrencies improve access to finance but the challenges and risk tied to the unregulated digital asset are higher than the advantages.

The Bretton Woods institution listed quick and easy payments and inclusive access to previously “unbanked” parts of the world as part of the new opportunities in the crypto ecosystem.

It said crypto assets such as Bitcoin, Ethereum, Ripples, Doge, and other stables coins could aid money laundering and terrorism financing, adding that the anonymity it offers create regulatory problems.

IMF said: “The (pseudo) anonymity of crypto assets also creates data gaps for regulators and can open unwanted doors for money laundering as well as terror financing.

“Although authorities may be able to trace illicit transactions, they may not be able to identify the parties to such transactions. Additionally, the crypto ecosystem falls under different regulatory frameworks in different countries, making coordination more challenging.

“For example, most transactions on crypto exchanges happen through entities that operate primarily in offshore financial centers. This makes supervision and enforcement not only challenging, but nearly impossible without international collaboration.”

While picking out the problems of cryptocurrency usage, IMF said many entities issuing stable coins do not have a dependable operational structure, prone to hackers and causing users to lose their funds invested in the assets.

“Many of these entities lack strong operational, governance, and risk practices. Crypto exchanges, for instance have faced significant disruptions during periods of market turbulence.

“There are also several high-profile cases of hacking-related thefts of customer funds. So far, these incidents have not had a significant impact on financial stability. However, as crypto assets become more mainstream, their importance in terms of potential implications for the wider economy is set to increase,” it added.

https://www.ripplesnigeria.com/why-cryptocurrencies-pose-great-risk-to-the-economy-imf/

Mugu fall guy man chop crypto continues..

I see it more as a disruptor to the mainstream financial economy than a risk!

Shat da 4ckup IMF bunch of ecocentric idiots.. Na Ogun go kill una

The only thing governments can do is regulate it and reduce money laundering via crypto assets. They cannot stop the increased awareness, adoption and institutional investment in it.
I don't know of any other investment in the world that has yielded as much returns in the last decade as crypto, especially bitcoin. Over the years it has become a potent store of value and organisations will continue to back it despite government crackdown.

obi4eze:
The only thing governments can do is regulate it and reduce money laundering via crypto assets. They cannot stop the increased awareness, adoption and institutional investment in it.
I don't know of any other investment in the world that has yielded as much returns in the last decade as crypto, especially bitcoin. Over the years it has become a potent store of value and organisations will continue to back it despite government crackdown.

I wish I could counter what the article said but deep within, I might not just want to accept the truth.

Until cryptocurrencies have legislation backing them especially from rich and advanced economies, they remain high risk investments. Only put in what you can afford to lose.

I have seen digital currenciesike like Egold and Liberty Reserve summarily banned by the USA, with holders of these currencies lose billions overnight.

I believe that countries are still watching them in the hope that may use them to create money in a world where budget deficits have become a norm. It will be like holding gold, but this time, one created for free